How Can I Settle My Credit Card/Personal Loan Debt?

Many people have a lot of debt. If you are working and can pay your bills, everything is fine. However, sometimes unforeseen circumstances come up and you get behind on your bills or cannot pay them at all. This causes a lot of problems for you and your family financially. There are ways to settle your credit card and loan debt and help you get back on your feet.

Instructions

1

Assess your bills and put them in order of least to greatest. Settle the smaller ones first.

2

Call the credit card or loan company directly and explain your situation to them. Ask if you can make a settlement deal with them, which you can usually pay in one lump sum or split up into two payments.

3

Find a debt settlement company if you have a lot of different debts. Work with the settlement company, who will in turn work with the credit card and debt companies to take a decreased amount in payment and/or lower your interest rate drastically.

4

Research the company a little bit before you make any arrangements, as some charge you an exorbitant amount of money to help settle your debts or charge you a lot of money up front. Find a company that is on good terms with the Better Business Bureau.

5

Gather all your most recent statements from your debts. Call the company you decide to work with. Give them all the information about your debts including the companies' names and addresses, your account numbers and the total amount of the debt.

6

Follow the debt settlement company's instructions for monthly payments or setting aside a certain amount of money a month until you have enough to pay off one loan at the settled amount. Make sure you keep up with this or the debt settlement company may charge you more or the loan and credit card companies may not be so willing to settle with you.